Supply Chain Sustainability

The Teijin Group aims to engage in sustainable business activities and enhance its corporate value by exercising its social responsibilities and obtaining the confidence and trust of society (stakeholders).

Basic Policy for Purchasing and Procurement

The Teijin Group aims to engage in sustainable business activities and enhance its corporate value by exercising its social responsibilities and obtaining the confidence and trust of society (stakeholders). It is an important social responsibility to provide superior products in a sustainable and stable manner to satisfy customers. We believe that to fulfill this responsibility, it is vital to improve the quality of our purchasing and procurement of raw materials, components, and services, and we have therefore established this Basic Policy for Purchasing/Procurement with the aim of forging sound relationships with suppliers. We have also determined Basic Stance of Persons in Charge of Purchasing / Procurement that describes in specific terms how purchasing / procurement personnel should behave to ensure that they do not establish inappropriate relationships with suppliers, and to promote initiatives based on cooperation with the aim of sustainable purchasing and procurement.

Basic Policy for Purchasing and Procurement
  1. 1.Compliance with laws and regulations

    The Teijin Group observes laws and regulations of respective countries and endeavors to understand and respect international norms and guidelines in conducting its procurement activities.

  2. 2.Fair trade

    The Teijin Group endeavors to engage in highly transparent transactions that are just and fair, and does not participate in cartels or bid-rigging.

  3. 3.Basis of product and supplier assessment

    The Teijin Group, in addition to quality, prices, delivery dates, and procurement periods, properly assesses the financial situation, technological capabilities, social responsibility initiatives, etc. of suppliers, and engages in transactions that are based on rational decision-making.

  4. 4.Human rights/Labor

    The Teijin Group promotes purchasing and procurement from suppliers that respect human rights and do not commit human rights infringements such as unjust discrimination, slave labor, forced labor, child labor, human trafficking, etc.

  5. 5.Safety and Health

    The Teijin Group promotes purchasing and procurement from suppliers that properly manage health and safety risks and take action to improve occupational health and safety on an ongoing basis.

  6. 6.Environment

    The Teijin Group promotes purchasing and procurement from suppliers that practice environmental management by, for example working to conserve the environment and protect natural resources.

  7. 7.Blocking of relationship with antisocial forces

    The Teijin Group blocks relationships with antisocial forces such as crime organizations, refuses inappropriate requests, and does not provide them with money.

  8. 8.Relationship with stakeholders

    The Teijin Group proactively communicates with stakeholders and promotes sustainable purchasing and procurement based on cooperation grounded in trust relationships. Furthermore, the Teijin Group collaborates with suppliers to promote initiatives based on the CSR Procurement Guidelines.

(Established September 1, 2006; Revised November 1, 2017)

Basic Stance of Persons in Charge of Purchasing and Procurement
  1. 1.Compliance with laws and regulations

    Purchasing/procurement personnel observe relevant country laws and regulations. In addition, they will constantly monitor international norms and guidelines, industry standards and their trends and strive to respect them in engaging in transactions.

  2. 2.Fair trade
    1. (1)Purchasing/procurement personnel do not participate in cartels or bid-rigging, and endeavor to maintain sound relationships with suppliers. They also do not abuse their status to demand inappropriate discounts, services, contributions, etc.
    2. (2)Purchasing/procurement personnel do not have personal interests with any supplier, and do not accept personal benefits such as rewards or gifts.
  3. 3.Information security

    Purchasing/procurement personnel carefully manage confidential information relating to transactions and safeguard intellectual property rights.

  4. 4.Basis of product and supplier assessment

    Purchasing/procurement personnel rigorously assess goods and services, and engage in transactions where consideration is given to quality, prices, delivery dates, and procurement periods, as well as the financial situation, technological capabilities, corporate approach, and social responsibility initiatives of the suppliers.

  5. 5.Human rights/Labor

    Purchasing/procurement personnel do not force inappropriate transaction terms on suppliers nor force them to accept unreasonably low prices, etc. and promote purchasing and procurement from suppliers that respect human rights and do not support forced labor or long working hours.

  6. 6.Safety and Health

    Purchasing/procurement personnel promote purchasing and procurement from suppliers that ensure occupational health and safety and take action to maintain and improve the health of their workers.

  7. 7.Environment

    Purchasing/procurement personnel promote green purchasing and procurement and purchasing/procurement of environmentally-friendly products and services.

  8. 8.Blocking of relationship with antisocial forces

    Purchasing/procurement personnel adopt a firm attitude toward criminal organizational and other antisocial forces, not allowing their involvement, and blocking any and all relationships with them.

  9. 9.Relationship with stakeholders

    Purchasing/procurement personnel collaborate with suppliers to promote initiatives based on the CSR Procurement Guidelines. Furthermore, they endeavor to ensure suppliers' understanding of the Guidelines and collaborate with suppliers with regard to initiatives for improvement.

(Established September 1, 2006; Revised November 1, 2017)

CSR Procurement

To manufacture and distribute its products, the Teijin Group procures a large amount and wide variety of raw materials, equipment, components and services from many companies around the world. Furthermore, to realize a sustainable supply chain globally, we have established the CSR Procurement Guidelines as one of the criteria for determining whether it is advisable to conduct business. We require our suppliers to conduct activities in compliance with our guidelines.

When selecting suppliers, we adhere to our purchasing guidelines based on fair and rational judgments.

CSR Procurement Guidelines

With regards to the Teijin Group’s purchasing and procurement activities, we request that suppliers take the following action. In addition, we will promote to purchase and procure from suppliers that have been taking these actions.

  1. 1.Quality and safety
    Products must meet safety and quality standards prescribed under laws and regulations in individual countries as well as industry standards.
    Chemical additives must be properly managed, and by, for example, obtaining external certification such as ISO 9001.
    Furthermore, a quality management system must be deployed and continuously maintained and improved to promote quality assurance.
  2. 2.Human rights and labor
    1. (a)Forced labor
      Slave labor, human trafficking, debt bondage, labor based on violence, threats, or political oppression, or any other form of forced labor is prohibited.
    2. (b)Child labor and young workers
      Children under the age of 15 years must not be hired in any country in which you have activities. Furthermore, you must not allow young workers between the ages of 15 and 17 to work at night, work overtime, or perform work that puts their health or safety at risk. You must also pay young workers appropriate remuneration and respect their right to learn.
    3. (c)Foreign workers
      Foreign workers must be provided with an employment contract and rules of employment in languages which employees can understand. Employers and temporary staffing agencies (including business cooperatives and nonprofit organizations) must not confiscate and prevent the use by workers of government-issued identity cards, passports, and work permits (unless holding work permits is required by law) as well as migrant applications. Furthermore, employers and temporary staffing agencies must not charge fees to workers.
    4. (d)Working hours and holidays
      Working outside regular hours (overtime, working on holidays, etc.) is only permitted if the worker agrees to it. Except under special circumstances, workers cannot be required to work more than the maximum weekly working hours prescribed under local laws and workers must be given at least one contiguous 24-hour period off per week. Furthermore, paid holidays and statutory holidays must be provided in accordance with local laws.
    5. (e)Wages and welfare benefits
      After explaining the components of wages and the method used for calculating them, you must pay workers at least minimum wage. You must also provide statutory welfare benefits. Wages for work performed outside regular hours must be calculated in accordance with applicable laws and must be higher by a reasonable percentage than wages for regular work.
    6. (f)Discrimination
      Recruitment, remuneration, welfare benefits, training opportunities, work duties, promotions/wage increases, and discipline/dismissal must not be influenced by race, nationality, gender, religion, age, disability, marital status, family background, organizations joined, gender identity, sexual orientation, or political ideology. You must implement measure for preventing discrimination such as providing training to all workers.
    7. (g)Harassment
      Workers must be treated with respect and dignity, and must not be exposed to any sort of harassment or pestering. You must implement measure for preventing harassment such as providing training to all workers.
    8. (h)Freedom of association
      The right of workers to freely exercise the right to organize and the right to collective bargaining must be recognized. You must also make efforts to resolve labor disputes and engage in effective and periodic communication with workers and their representatives.
  3. 3.Safety and Health
    1. (a)Permits relating to labor safety and health
      You must apply for permits relating to labor safety and health for facilities and operations that require them and assign licensed personnel in accordance with laws, regulations, etc. in order to properly manage them.
    2. (b)Sanitary facilities
      You must endeavor to maintain the health of employees in order to prevent diseases and occupational accidents. Workers must be provided with a safe and hygienic working environment, and access to sanitary facilities such as toilets and dining rooms must not be unjustly restricted. Furthermore, dormitories for workers must be equipped with proper sanitary facilities and kept clean.
    3. (c)Preparedness for emergencies
      To prepare for emergencies, workers must be provided with training concerning notifications and evacuation procedures, and proper equipment such as fire extinguishers and fire alarms must be installed and maintained. In other words, efforts must be made to minimize damage in the event of an emergency.
    4. (d)Safety training
      Proper training concerning workplace health and safety must be provided on an ongoing basis in languages which employees can understand. Furthermore, information relating to health and safety must be clearly displayed in the workplace.
    5. (e)Measures to ensure the safety of machinery
      Machinery needs to be assessed for safety risks. If there is a risk of workers suffering injury due to machinery, physical protection measures must be implemented such as guard rails, interlocks, protective walls, etc. as required and the machinery concerned must be properly maintained and managed.
    6. (f)Occupational health
      The risk which chemical, biological, and physical substances will influence workers must be identified, assessed, and managed. We also recommend that all workers receive a medical examination by the frequency pursuant to laws or at least once a year, whichever is more.
    7. (g)Occupational accidents
      Classification and records of injuries resulting from occupational accidents and illnesses must be kept, the necessary treatment must be provided, the causes of occupational accidents must be investigated, corrective action must be taken to eliminate the causes of them, and a process must be followed for enabling workers to return to the workplace.
    8. (h)Occupational health and safety management system
      A management system for occupational health and safety, such as one based on ISO 45001, must be deployed and internal audits must be performed in order to facilitate ongoing improvements in occupational health and safety. We also recommend the management of health and safety risks.
  4. 4.Formulation of business continuity plan
    We recommend that a business continuity plan be formulated and strategically administered to allow business operations to continue or be promptly restarted in the event of a disaster or accident.
  5. 5.Fair trade and ethics
    1. (a)Prohibition of bribery
      The exchange or provision of entertainment, gifts, or money for the purpose of illicit gain in the course of engaging in transactions is prohibited. You must also formulate and implement a policy and measure for preventing corruption, bribery, and extortion.
    2. (b)Fair business
      You must not engage in private monopoly, inappropriately restrict trading (through cartels, bid-rigging, etc.), employ unfair business methods, or abuse your status, and you must comply with competition laws in individual countries and territories. You must also confirm legal or regulatory developments that apply to your company and inform workers about them. We also recommend that you provide all workers with training on fair trading and ethics.
    3. (c)Intellectual property
      You must endeavor to safeguard and utilize your company’s intellectual property rights. Furthermore, you must not unjustly infringe the intellectual property rights of other companies.
    4. (d)Information disclosure and presentation You must properly disclose or display information concerning labor, health/safety, and environmental initiatives, business activities, financial condition, products, and corporate structure and performance in accordance with applicable regulations, etc.
    5. (e)Information security
      You must only obtain personal information and confidential information using appropriate methods. You must also strictly manage and protect it, and only use it within a reasonable scope.
    6. (f)Conflict minerals
      You must take care that minerals that you procure or that are used in your products do not provide any sourcing of finance for armed groups or organizations involved in human rights violations, environmental disruption, corruption, etc. in conflict regions and high-risk areas. In particular, “conflict minerals” must not be used in principle.
      • *Conflict minerals: Designated metal ore (gold, tin, tantalum, and tungsten) mined in conflict regions and high-risk areas with the concern to provide sourcing of finance for armed groups or organizations involved in human rights violations, environmental disruption, corruption, etc.
    7. (g)Blocking of relationships with antisocial forces
      You must adopt a firm attitude toward criminal organizations and other antisocial forces, not allowing their involvement, and blocking any and all relationships with them.
  6. 6.Export control Compliance
    With regard to products or technologies subject to your national export control laws and/or regulations and other applicable export control-related laws and regulations of other countries, you must implement thorough measures to ensure that you comply with them and are not involved in illegal exports.
  7. 7.Environmental conservation
    1. (a)Action on climate change
      You must endeavor to devise methods for improving energy efficiency and minimizing the consumption of resources. You must also identify current emissions of greenhouse gases by each of your facilities and by your company as a whole and take action to reduce them.
    2. (b)Permits relating to environmental conservation (air, wastewater, noise, vibration, etc.) You must apply for environmental-conservation-related permits for facilities and operations that require them and assign licensed personnel in accordance with laws, regulations, etc. in order to properly manage them.
    3. (c)Minimizing environmental impact (air, water, soil)
      To prevent air, water, and soil pollution, you must manage and treat discharged substances.
    4. (d)Management of chemical substances Chemical substances that could cause environmental pollution must be managed safely. Chemical substances that are prohibited under the laws and regulations of individual regions and territories must not be used. Furthermore, regarding the substances whose use has been limited by laws and regulations you must notify customers of whether those substances are contained in products. In addition, SDS must be issued and updated.
    5. (e)Waste reduction (3Rs)
      You must pursue the 3Rs(reduce, reuse, and recycle) in order to reduce waste and byproducts.
    6. (f)Water usage control
      You must manage water intake and water discharge and you must strive to optimize water usage.
    7. (g)Environmental management system
      You must formulate an environmental policy, take action and develop products, raw materials, and technology for preventing pollution, and make efforts to conserve the environment. We also recommend that you conduct internal audits, obtain certification, such as ISO 14001, for your environmental management system, and perform environmental impact assessments.
    8. (h)When purchasing or procuring products or services, we recommend that you consider the environment, and purchase and procure from suppliers that are endeavoring to reduce environmental impact such as by selecting products and services with the minimum environmental impact.
      Regarding hazardous substances found in raw materials, these must be managed in accordance with the Teijin Group's "Substances Prohibited to be Procured" and "Substances Principally Prohibited to be Procured."
  8. 8.Consideration for local communities
    When conducting business in local communities, we recommend that you engage in dialog with local residents (including indigenous peoples) in advance and adapt your business activities to suit the community.
  9. 9.Contact point for consultations and internal reporting
    You must deploy and operate a system for seeking advice and internal reporting that ensures that its users need not fear retribution, such as by being forced into a disadvantageous position. We recommend that you install a neutral advice and internal reporting point operated by the third party to protect internal reporters and prevent retribution.
  10. 10.Responsible supply chain promotion
    You must inform your suppliers about the contents of these guidelines and you must endeavor to ensure compliance. We also recommend that you monitor compliance and work together with suppliers to address inadequacies.

(Established May 7, 2007; Revised April 1, 2021)

Survey of Suppliers for Sustainable Procurement

Implementation of surveys

As one of its survey methods, the Teijin Group conducts a CSR procurement questionnaire survey once a year, about whether suppliers operate in compliance with CSR Procurement Guidelines.

  • Survey target
    Suppliers with high domestic and overseas purchase volumes related to the supply of products and services of each business of the Teijin Group.
  • Survey items
    The following 10 items:
    CSR promotion system, product safety and quality assurance, human rights and labor, health and safety, business continuity plan, fair trade and ethics, export control compliance, environmental conservation, consideration for local communities, and contact point for consultations and internal reporting.
  • Evaluation method
    Scores on a 100-point scale
    Suppliers are ranked into five levels from A-E depending on their scores on the survey, with A, B, and C ranks defined as "no problems as a supplier", and D and E ranks as "priority target of guidance for improvement."

Results for FY2022

In FY2022, we sent questionnaires to 1,706 suppliers and received responses from 842 companies. The following table shows the survey results of the five-level ranking for the 833 suppliers with valid responses at the time of primary tabulation as well as in the subsequent follow-up survey (converted to number of companies).

Level Primary Tabulation Follow-up Survey
A 261 companies 261 companies
B 306 companies 306 companies
C 200 companies 202 companies
D 43 companies 41 companies
E 23 companies 23 companies

Results of a follow-up survey to examine suppliers (66 companies) who were ranked in levels D and E in the primary tabulation, shows that 64 suppliers came to be ranked in these levels. We are committed to promoting education and improvement through seminars and other means for these 64 suppliers, and to continued follow-up on their improvement status.

In addition to the five levels of A-E, we were concerned about the replies of 72 companies to a question relating to respect for human rights (child labor, late-night and overtime work by young employees, certification management for foreign workers, acquisition of a least one day off a week, and conflict minerals), which the Teijin Group sets as a key issue. As a result of a follow-up survey, the number of companies actually recognized as a cause for concern was two. We will continue to check on the state of improvements in these two companies.

Summary of the FY2022 CSR procurement questionnaire survey

Distribution of questionnaire (A) Number of respondents (B) Number of companies with valid response (C) Companies that were ranked D and E and those for which there were concerns regarding respect for human rights as a result of careful examination (primary tabulation) (D) Companies that were ranked D and E and those for which there were concerns regarding respect for human rights as a result of careful examination (secondary tabulation) (E)
1,706 companies
842 companies
833 companies
138 companies
66 companies
  • Survey exemption for excellent suppliers
  • We send CSR Procurement Guidelines, instead of questionnaires, to excellent suppliers who have been evaluated as low-risk in past surveys. Their receipt of the Guidelines helps in making the follow-up procedures more simplified. 92 suppliers were targeted in FY2022.

    To date, the Sustainability Development and Engagement Department has formulated plans for and promoted CSR procurement for the Teijin Group. Moving forward, authority over these matters will be transferred to procurement departments involved in work related to CSR procurement in order to integrate responsible supply chain initiatives into the procurement management process.

    Distribution of Supplier Rankings
    Distribution of Supplier Rankings

Care for contractors and work contracts

The Teijin Group is focusing on maintaining proper work contracts based on mutual trust and cooperation with contractors to whom we have outsourced. In addition to respecting the position of workers, not to mention careful attention to labor compliance and human rights, we also give due consideration to occupational health and safety. Following this, in order to maintain this status, we have been conducting regular awareness-raising activities at various worksites.

Supply Chain Seminar

CSR supply chain seminar held to strengthen CSR procurement initiatives

Since 2012, Teijin Frontier Co., Ltd. has been globally expanding an integrated value chain from the development and procurement of materials to product realization on an ongoing basis. The company has been promoting a companywide “CSR Procurement Project.” Teijin Frontier has established a particularly large number of apparel production bases across Asia, and believes that it is important to raise awareness of CSR procurement locally on an ongoing basis. As one element of this, the company conducts CSR supply chain seminars every year at overseas production bases for local sewing and embroidery factories, material manufacturers, etc. with the aim of enforcing legal compliance and the protection of human rights.

Results for FY2022

Lecture in China

From September through November 2022, we disseminated videos to our Chinese suppliers covering the content below. On March 10, 2023, we held an online seminar involving the same content, in which 20 companies participated. For our lectures, we received the cooperation of the Shandong Qingtai Law Firm, Beijing DHH Law Firm, and Energetic Green. Lectures, as well, were held on the following topics.

  1. 1.Trends in sustainable procurement
  2. 2.Teijin Frontier's vision for the supply chain (initiatives toward human rights)
  3. 3.Corporate compliance and practical guidelines for personnel transfers
  4. 4.Opportunities and issues facing companies against the backdrop of China's "dual carbon" strategy

Lecture in Vietnam

On December 13, 2022, we held a seminar in Ho Chi Minh City for our Vietnamese suppliers, attended by 33 individuals from 19 companies. For lectures, we received the cooperation from the ILO Office in Japan, GAIA Vietnam, and Energetic Green. Specific themes were as follows:

  1. 1.Trends in sustainable procurement
  2. 2.Guideline for Responsible Business Conduct for the Textile and Clothing Industry of Japan
  3. 3.Trends in environmental issues facing Vietnam

Lecture in Japan

In FY2022, online seminars were held in Japan on June 15 and 145 companies participated. Specific themes were as follows:

      Online seminars
  1. 1.Trends in sustainable procurement
  2. 2.Teijin Frontier's vision for the supply chain (initiatives toward human rights)
  3. 3.Teijin Frontier's environmental strategy THINK ECO

Green Purchasing

The Teijin Group established the Green Purchasing Policies and Green Purchasing Guidelines in March 2001 to promote green purchasing (preferential purchasing) of environmentally friendly products and services. For office supplies, we have promoted the preferential purchasing of products meeting the requirements of the Green Purchasing Standards for Office Supplies, also established by the Teijin Group.

Initiatives for environment-friendly products for office supplies

Cost reductions and an expansion of green purchasing products was broadly implemented across Group companies. However, compared with FY2021, the ratio of green purchases dropped in FY2022.

Green Purchasing Policies
  1. 1.Fully consider the necessity of purchasing before buying a product or service. Curtail the quantity as much as possible when purchasing.
  2. 2.Purchase environmentally friendly products and services based on an assessment of their entire lifecycle, including collection of resources, manufacture, distribution, use, disposal, and recycling.
  3. 3.Give preference to suppliers that are active in environmental conservation.
  4. 4.Pursue environmental information necessary for making decisions on green purchasing from a broad range of sources, and request that manufacturers and distributors provide such information.
Green Purchasing Guidelines
  1. 1.Reducing environmental pollutants
    1. (1)Ensure that we do not use substances whose manufacture or usage is prohibited by law (e.g., PCBs)
    2. (2)Ensure that there is little possibility of emitting pollutants into the environment that could adversely impact the environment and people's health at all stages of the product life cycle
  2. 2.Saving resources
    1. (1)Limit the consumption of finite resources such as metal resources and fossil fuels (oil, coal, etc.)
    2. (2)Extract sustainable resources, such as forest resources, using sustainable methods with minimal impact on ecosystems and make effective use of such resources
    3. (3)Strive to reduce the size and weight of products
  3. 3.Saving energy
    1. (1)Adopt manufacturing methods that only consume small amounts of energy sources such as fossil fuels (oil, coal, etc.)
    2. (2)Promote energy conservation at the logistics and use stages
  4. 4.Long durability
    1. (1)Consider the long-term use of durable consumables from perspectives such as ease of maintenance, length of maintenance service, and expanded functionality
  5. 5.Recyclability
    1. (1)Use materials that can be easily reused and recycled
    2. (2)Strive to reduce the types of materials used and to make material use more consistent
    3. (3)Ensure the simple organization of reusable and recyclable materials
    4. (4)List material names for reuse and recycling
    5. (5)Establish easy-to-use systems for collection and recycling
  6. 6.Regenerated materials, etc.
    1. (1)Make use of numerous products and materials that have been recycled or restored
  7. 7.Ease of treatment and disposal
    1. (1)Design final treatment/disposal processes that give consideration to minimizing burden on the surrounding environment and on treatment and disposal facilities

To All Our Suppliers

Request for participation in questionnaire on the status of sustainability promotion in your company

In order to fulfill its social responsibilities in procurement activities in Japan and overseas, the Teijin Group has established CSR Procurement Guidelines and promotes procurement activities that emphasize the protection of human rights, consideration for occupational safety and health, and preservation of the environment among others.

In order to promote CSR procurement, it is essential to obtain the cooperation of suppliers involved in procurement activities of the Teijin Group. The Group aims to develop transactions with suppliers who can promote CSR procurement activities together, and we request companies engaged in purchasing and procurement to extend their understanding and cooperation for sustainability promotion activities.

Therefore, as part of the sustainability promotion activities, we ask suppliers to participate in CSR procurement questionnaires. These questionnaires are implemented via internet questionnaire sites offered by The Global Alliance for Sustainable Supply Chain (ASSC). The content of responses is used solely for the intended purpose without disclosure to any third party other than the Teijin Group.

(emails are sent out from the domain name of as requested by the Company and are not spam emails of any kind.)

The results of the responses are compiled and a feedback report is sent at a later date, so it can be used as reference for future sustainability promotion activities.